JD

JD.com Shs Sponsored American Depositary Receipt Lev III Repr 2 Shs -A-

TMT, Consumer


Presented:08/28/2019
Price:$30.30
Cap:$37.14B
Current Price:$40.16
Cap:$54.83B

Presented

Date08/28/2019
Price$30.30
Market Cap$37.14B
Ent Value$41.81B
P/E Ratio47.63x
Book Value$6.85
Div Yield0%
Shares O/S1,225.60M
Ave Daily Vol12,645,485
Short IntN/A

Current

Price$40.16
Market Cap$54.83B
JD.com, Inc. is a technology driven E-commerce company. It engages in the sale of electronics products and general merchandise products, including audio, video products, and books. The company operates through the following business segments: JD Mall, and New Businesses. The JD Mall segment represents its core e-commerce business. The New Businesses segment includes logistic services provided to third parties, technology services, overseas business, insurance and O2O. It also provides an online marketplace, whereby third-party sellers sell products to customers primarily through its websites and mobile apps. The company offers advertising, logistics and other value-added services. JD com was founded on June 18, 1998 by Qiang Dong Liu and is headquartered in Beijing, China.

Publicly traded companies mentioned herein: Alibaba Group (BABA), Amazon.com (AMZN), JD.com (JD), Netflix Inc (NFLX)

Highlights

The presenter is long shares of JD.com (JD) following a perfect storm of events that took place throughout 2018. JD’s stock price peaked at $51 in the early part of 2018 and then was hit by a number of negative events including; a double investment cycle in JD Logistics and a ramp up of R&D spend, China trade war concerns, an LTM customer slowdown, and a CEO scandal. With these events behind the company, the presenter thinks the current set up is attractive. Taking the company’s stakes in other publicly traded companies, JD Logistics, and JD Finance at a 50% discount, 5% EBIT margins on JD Mall (their 1P and 3P business), and applying that to 2020 revenue numbers, the presenter sees 66% upside from the current price of $30/share. 

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